Use the following information to solve for both the levered and unleved NPV & IRR..Please note: mortgage and income numbers are to be annual numbers, not monthly.Potential InvestmentPurchase Price:$700,000.00Years:30LTV:80.0%Rate:7.0%PAID ANNUALLYOrigination Expenses:3.0%of the loan amountNOI$75,000.00Per YearRequired Return Levered:Required Return Un-Levered:Expected Price Appreciation:Selling expenses:13.0%10.0%4.0%Years5.0%of the sale priceExpected holding period:2YearsWorkspace: LeveredCF-0CF-1CF-2NPV =IRR =Un-LeveredCF-0CF-1CF-2NPV =IRR =12

The mortgage is a covered loan taken out to purchase a property. The property itself acts as…

Use the following information to solve for both the levered and unleved NPV & IRR.. Please note: mortgage and income numbers are to be annual numbers, not monthly. Potential Investment Purchase Price: Years: LTV: Rate: Origination Expenses: NOI Required Return Levered: Required Return Un-Levered: Expected Price Appreciation: Selling expenses: Expected holding period: $700,000.00 30 80.0% 7.0% 3.0% $75,000.00 13.0% 10.0% 4.0% 5.0% 2 PAID ANNUALLY of the loan amount Per Year Years of the sale price Years

Use the following information to solve for both the levered and unleved NPV & IRR.. Please note: mortgage and income numbers are to be annual numbers, not monthly. Potential Investment Purchase Price: Years: LTV: Rate: Origination Expenses: NOI Required Return Levered: Required Return Un-Levered: Expected Price Appreciation: Selling expenses: Expected holding period: $700,000.00 30 80.0% 7.0% 3.0% $75,000.00 13.0% 10.0% 4.0% 5.0% 2 PAID ANNUALLY of the loan amount Per Year Years of the sale price Years

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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DF% (Debt financing rate) = 60%; ER (Required rate of return on equity) = 15%; Original Loan = $500,000 with annual payment of 5% for 30 years 1) What is the mortgage constant? (Round to the nearest 0.01) 2) What is the annual payment of the loan? (Round to the nearest $1) 3) What is the capitalization rate?
A home worth $ 1,000,000.00 will have a 70% loan at an annual mortgage rate of 8%, with the remaining30% equity. What must the net operating income (NOl) be in order to generate a 12 per cent cash oncash return?Select the correct response:$700,000.00$120.000.00$92.000.00$84.000.00$56.000.00
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Assume that a lender offers a 30-year, $153,000 adjustable rate mortgage (ARM) with the following terms: Initial interest rate = 7.5 percent Index = one-year Treasuries Payments reset each year Margin = 2 percent Interest rate cap = 1 percent annually; 3 percent lifetime Discount points = 2 percent Fully amortizing; however, negative amortization allowed if interest rate caps reached Based on estimated forward rates, the index to which the ARM is tied is forecasted as follows: Beginning of year (BOY) 2 = 7 percent; (BOY) 3 = 8.5 percent; (BOY) 4 = 9.5 percent; (BOY) 5 = 11 percent. Required: a. Compute the payments and loan balances for the ARM for the five-year period. b. Compute the yield for the ARM for the five-year period. Complete this question by entering your answers in the tabs below. Required A Required B Compute the payments and loan balances for the ARM for the five-year period. (Do not round intermediate calculations. Round "Payments" to 2 decimal places and "Loan Balance"…
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Exercise 2: Directions: Analyze the given amortization procedures in the table below then fill in cach blank using the guide questions below the table. Problem: A salary loan amounting to P15,000 is to be paid annually for 4 years with an interest rate of 6% compounded annually. The annual amortization is P P4,328.87. PRINCIPAL Outstanding Balance Interest Regular Payment (R) Period Component of Component of Рауment Раyment P11,571.13 7,936.53 E 1. 2. 3. P4,328.87 P4,328.87 P4,328.87 P900 P694.27 P3,428.87 3,852.68 4,083.84 4 245.031 F Total G. H. Guide Questions: A. How much is the amount of the loan? (Outstanding balance at time 0) B. How much is the first regular annual payment? C. For the second payment, how much goes to pay the principal? D. For the third payment, how much goes to pay the interest? E. How much is the outstanding balance after the 3rd payment? F. How much should be the outstanding balance after the 4th or last payment? G. How much is the total amount of regular…
Assuming the leasehold yield is 2% above the freehold yield, calculate the Years Purchase (YP) dual rate for 10 years if the accumulative rate is 3% and that a comparable freehold property let at full market rent of $40,000 has just been sold for $500,000. Hint: Analyse the market yield from the comparable first and then use it to calculate the required YP. 4.3872 7.3625 6.1250 5.3410
What is the effective yield to the lender through the date of prepayment on a $540,000 fixed rate mortgage loan fully amortizing over 30 years but paid off after 10 years if the stated annual interest rate is 6.50%, the lender charges 2.0% as an origination fee, $720 for an appraisal and $36 for a credit report and there is no prepayment penalty? -6.81% -6.71% -6.30% -6.50%
Your property has net operating income of 4,500,000. Assuming you value the property with a cap rate of 6.5%, what is the DSC ratio if the lender will lend up to 75% of value and the rate is 4.5% based on a monthly pay, 30 years, fully amortizing loan? Group of answer choices 1.43 1.35 1.51 1.27

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